Starting your own company need several legalities to be met, amongst which the most important and the most initial legal obligation is to register your company. In the registration process the main aim is to register the name of the company as well as its nature of business. To register the company in Pakistan there is well defined procedure which is being illustrated below for the guidance of the people.
Company Registration Process in Pakistan
- 1. The registration of the Name: The very basic requirement is that the name should be registered by the Security and the Exchange Commission of Pakistan (SECP). This is being one through the official website of SECP where you give two options of the name and its availability is being checked that whether that particular name is registered before or not.
- 2. Fees for the Name Registration: When the availability is being checked than the fees for the registration and the company incorporation to be deposited in the designated Muslim Commercial Bank Branches in Pakistan. The comprehensive details of fees and the designated branches are being mentioned on the official website of SECP.
- 3. Company incorporation registration: the official website of SECP contains three documents which are to be submitted for the registration of the company incorporation. These three forms are to be submitted with the following information:
- Declaration of compliance
- Identification of office’s location and particulars of directors
- Chief accountant
- Auditors and others
- Memorandum and article of association
- Signatures of all the partners.
- 4. Get digital Signatures and make company seal: The digital signatures are being obtained from the Natioanl Institutional Facilitation technologies (NIFT) and this can be done again by using the E-Services of the SECP official website. The city in which the company is to be launched needs the company seal this is generally being obtained after the issuance of company incorporation.
- 5. Registration for various taxes: The company is liable to pay all the taxes which are being imposed by the Government of Pakistan, so it is obligatory for the company to get itself registered for the following taxes:
- Income Tax: The Company should apply for the National Tax Number (NTN) at the regional tax office (RTO) under the Federal Board of Revenue (FBR). The requirement for this application submission includes NTN form, proof of registration, memorandum and articles of association, bank account number, copies of national identity cards of the company’s directors, and an attestation of the business address. These all requirements are to be submitted in the RTO Pakistan.
- Sales Tax: As the company has registered for the income tax they are likely to be registered for the Income tax as well. The same documents are to be submitted with the application for acquiring the Sales Tax Number (STN) at the regional tax office (RTO) under the Federal Board of Revenue (FBR)
- Professional Tax: The Company has to make itself registered for the professional tax under the Excise and Taxation Department of the respective district in which the Company exists.
- 6. Register to Employee Social Security Institution (ESSI): This depends on the province in which the Company is being located. Each province has its own Employee social security institution and the Company is liable to get registered to the ESSI of their own province. Here are the following ESSI in Pakistan:
- Baluchistan Employees Social Security Institution (BESSI)
- Sindh Employees Social Security Institution (SESSI)
- Punjab Employees Social Security Institution (PESSI)
- Khyber Pakhtunkhwa Employees Social Security Institution (KPKESSI)
- 7. Register to Employee Old Age Benefit Institution (EOBI): Any organization which has 5 or more than 5 employees is prescribed to get registered under the federal Employee Old Age Benefit Institution. This registration ensures that the employees are entitled to a pension, disability, old-age grant and survivor’s pension.
- 8. Register to the Labor Law department of the respective district: Registration with the Labor Department under the West Pakistan Shops and Establishment Ordinance 1969 is required.
Official Websites for references:
- https://www.secp.gov.pk/, for general laws on companies
- https://www.cbr.gov.pk/, for laws on income tax, sales tax, professional tax etc
- https://www.sbp.gov.pk/, for laws on banking and insurance
- https://www.molm.gov.pk/ for laws on labor and manpower